Apple to bet back on LCD, cuts OLED orders for the iPhone Xs/Plus drastically

Apple to bet back on LCD, cuts OLED orders for the iPhone Xs/Plus drastically
The Korean iPhone supplier industry is worried. About the tepid sales of the iPhone X in this and the next quarters, that is. Apple, as well as analysts following it, initially forecast overall sales of the X at a cool 100 million, and the OLED display orders to Samsung indicated it in all earnesty, too.

The high price, and people's changing habits to keep their current phones longer, however, put a monkey wrench in those plans, and iPhone X suppliers reportedly got a 50% order cut this quarter, including Samsung, which was left with OLED display production overcapacity. This would mean that Apple expects to sell half of the X units that analysts were clamoring for, but that's not all.

Today, supply chain insiders and analysts are abuzz with the notion that Apple may order the Korean OLED industry just 50-55 million panels for the 2018 iPhone crop, even though it plans to launch not one, but two phones with such screens, the tentatively named 5.8" iPhone Xs, and a 6.4" iPhone Xs Plus. The panels for the first one are likely to again be sourced from Samsung, while Apple is rumored to diversify with LG as the larger screen's supplier.

This is a huge cut for the Korean parts industry orders, and the report says that "not only OLED, but also secondary suppliers manufacturing components and materials such as rigid printed circuit boards (RFPCB) and OLED materials, have been hit." After getting slammed by the sluggish iPhone X sales, the companies were hoping for a recovery in the second half of the year, but it may turn out that Apple will have much humbler estimates for the sales of its OLED iPhones this year, and will be betting on an eventual more affordable LCD model instead.

That one, dubbed the iPhone 9, is expected to sport a 6.1" screen, but it will be supplied by Japan Display and Sharp, apparently, leaving crumbs for Korean companies. While Apple's renewed interest in LCDs is said to result in 150 million units of the iPhone 9 sold overall, up from a 100 million forecast before, the switch will come entirely from the diminished orders for an iPhone Xs and Xs Plus, so you can see why the Korean firms are worried. The initial hopes for a 50/50 distribution between Apple's future OLED and LCD models, are apparently down in the doldrums. The report even goes as far as to say that they may be having to send workers in unpaid leave, that is how much Apple's orders can make or break suppliers, be it juggernauts like Samsung or LG.

source: ETNews (translated)

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30 Comments

2. c.m.s

Posts: 216; Member since: Dec 10, 2017

”Apple, as well as analysts following it, initially forecast overall sales of the X at a cool 100 million, and the OLED display orders to Samsung indicated it in all earnesty, too.” Apple has never mention their sales expectations of the iPhone X, only analytics have done that and been way off. Apple meeting their own guidance for the latest report tell us Apple are spot on with their own forecast so far.

7. TheOracle1

Posts: 1823; Member since: May 04, 2015

There will always be someone in denial. Sigh......

8. c.m.s

Posts: 216; Member since: Dec 10, 2017

Some people trust in facts and hard numbers and other believes in rumors and speculation...

13. TheOracle1

Posts: 1823; Member since: May 04, 2015

When Apple start breaking down their sales properly I'll believe in "hard" numbers. The point is that they never have.

14. c.m.s

Posts: 216; Member since: Dec 10, 2017

Again, you have their guidance, number of sales and revenue. All you need to tell that it was perfectly inline with their expectations. Had the fantasy analytics numbers also been Apples expected numbers they would missed their guidance by far. Its is the fact.

16. TheOracle1

Posts: 1823; Member since: May 04, 2015

Ok. If it makes you feel better.

17. c.m.s

Posts: 216; Member since: Dec 10, 2017

It doesn’t make me feel anything, its simply facts. Feelings are for fanboys and haters ;)

18. TheOracle1

Posts: 1823; Member since: May 04, 2015

When it comes to statistics they must be backed up by figures to become fact. Apple don't release their figures. Therefore, by definition, your postulations are no more accurate than the analysts. In "fact" the supply chain figures are the most accurate despite your slavish belief in everything Apple says.

19. c.m.s

Posts: 216; Member since: Dec 10, 2017

Of course they do. What is it that you do not understand? They release sales numbers, revenue and we have their guidance to tell us about their on expectations. You do get that if those fantasy numbers that some analytics suggested would have been inline with Apple own expectations Apple would not been even close to meet their own guidance, right? It’s as simple as that.

20. TheOracle1

Posts: 1823; Member since: May 04, 2015

They release total numbers. No specific unit sales. For example: "Apple watch sales increased by 25% year on year and is the best selling smartwatch in the industry." I don't doubt that statement at all. But increased by 25% over what figure? It may be true but it's meaningless without comparative figures year on year.

21. c.m.s

Posts: 216; Member since: Dec 10, 2017

We are talking about iPhones here and we know that number. You don't need that number broken down to specific model to see that iPhone X sales were really good and inline with Apples expectations (guidance) since we know the revenue from iPhone sales. But again, the guidance for sales numbers/revenue would have been MUCH higher if Apple also where expecting those kind of crazy fantasy numbers that some analyst expected (and that PhoneArena suggest Apple also expected). They did a poor job foreseeing the amount of units of such an expensive phone being sold. Apple did not, at least not so far.

22. TheOracle1

Posts: 1823; Member since: May 04, 2015

Overall iPhone sales fell from the same period last year. Fact. Spin any way you like but that won't change.

24. c.m.s

Posts: 216; Member since: Dec 10, 2017

Yes, that is correct (but just because one week less in the quarter compared to last year though) and it only supports what i'm saying because the revenue (ASP) went up alot, which again tells us that iPhone X sold very well.

25. TheOracle1

Posts: 1823; Member since: May 04, 2015

Yawn.......

26. c.m.s

Posts: 216; Member since: Dec 10, 2017

Reality and facts is boring to you? More fun with rumors and speculations... ;)

27. TheOracle1

Posts: 1823; Member since: May 04, 2015

No. Your canned iSheep responses. Zzzzzzzzzzz........

4. fyahking

Posts: 1146; Member since: Jan 28, 2015

They ar trying to save mor money.lol

5. gamehead unregistered

Wouldnt be surprised if it $1000

6. Cat97

Posts: 1677; Member since: Mar 02, 2017

Good. I always thought OLED was overrated, I have an S7 Edge with the keyboard burned on screen. Just put in a LCD with cleverly-implemented Always On Display (like LG flagships) and low power consumption, and I can't see why you would bother with OLED.

9. mootu

Posts: 1334; Member since: Mar 16, 2017

Samsung Display did just fine before Apple started using OLED and they will do the same if Apple stop using OLED.

10. Vokilam

Posts: 999; Member since: Mar 15, 2018

Thumbs up if you dont care what screen tech on your current or future devices as long as it's sharp! No trolls, just real opinion.

11. fyahking

Posts: 1146; Member since: Jan 28, 2015

Thumbs up, my notcha!

12. SIGPRO

Posts: 2810; Member since: Oct 03, 2012

Iphones what a failure!

15. markobarko

Posts: 176; Member since: Oct 09, 2016

Apple can not break sammy with oled orders. Where did you get this idea from iboy?

23. Bozzor

Posts: 248; Member since: May 02, 2012

I work with some people in the Apple and Samsung supply chain: this article is spot on. When Apple or Samsung gives you as contract, you are set - well, as along as you have cost leadership, otherwise you'll likely go broke even with a small error. Apple and to a lesser degree Samsung push suppliers hard for lowest possible price, but they do offer huge volumes...but there is no guarantee of those volumes, which is the killer. Because of the size of the companies, normal contract terms like minimum orders, discounts etc are far more in Apples favour than with smaller players like HTC. And if Apple cuts your orders, you are almost always uncompensated sufficiently, if at all...

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